You are here: Home » Economy & Policy » News » GST
Business Standard

E-commerce definition too wide in GST dispensation: Assocham

The chamber has sought clarity from government to remove uncertainty among businesses

Press Trust of India  |  New Delhi 

GST, tax, taxes, I-T, income tax
Photo: Shutterstock

The must clearly outline the scope of ‘e-commerce’ under the goods and services (GST), as the current definition can include even commodity derivatives exchanges where there is no actual delivery of goods, has said. “definition, as given in dispensation, has been left so wide that it could go well beyond Amazon or marketplace platforms and may even cover the commodity exchanges,” it said

The chamber has sought clarity from to remove uncertainty among businesses as the is set for a rollout either in July or September.

"The scope of the term 'electronic commerce' is very wide and does not restrict itself to cover electronic marketplace service providers like Amazon,

"It covers all businesses where the supply of goods /services is through a or electronic network," said in a communication to concerned ministries.

There are possibilities of unwarranted interpretations as futures and commodity exchanges may get treated as electronic marketplaces even though derivatives trading means no delivery of actual goods, it said.

"In our opinion such an interpretation will not be in consonance with the object and intent of special provisions for the electronic commerce business. There are distinguishing legal and operational factors between operators and commodity exchanges," the industry body said.

"The commodities exchanges cannot be treated as electronic commerce operator in their legal capacity as well as in common parlance."

It has also sought clarity on treatment of goods and services under for exports, gems and jewellery, MSME sector, banking and telecom.

"The would like a seamless and flawless roll out of the to infuse a sense of confidence among the consumers, trade and industry. Eventually, the GST should become a showpiece of our reforms," its Secretary General D S Rawat said in the statement.

The Central GST, one of the components of the law, is silent on exemptions provided on interest on loans.

"The exemption under services tax, which exempts interest, should be replicated under GST," it said.

GST is unification of multiple indirect taxes into a single law, hence, it is presumed current exemption would be continued for banking and other financial institution including non-banking financial company as these exemptions creates the basic foundation for taxing services provided by them, it added.

First Published: Mon, April 17 2017. 01:39 IST